Solving The Foreclosure Crisis

The government's attempt to stem the tide of foreclosures and arrest the incredible fall in home prices have been, in a word, pathetic. One proposal suggested was for banks to offer low 4% mortgages -- a step in the right direction. But in extending support to buyers of homes, it completely ignores the problems of millions of families that already have mortgages. As a result, it does little to halt the surge in foreclosures. With more home owners likely to default this year, the situation is far from recovery in spite of a wall street surge since March of this year. The new rates, and lower monthly payments, would be especially helpful for homeowners with negative equity (they owe more on their mortgages than their homes are worth). Such underwater borrowers, prime candidates for

Seeing other people reactions towards foreclosure helps me to develop a meaningful value of life and how to appreciate it everyday of my life. As I see what is going on around me I came up with three plans that can be executed to help all people who are dealing with foreclosure issues. This can become a major factor for the economy. One is called Own A Home , Financially Fit, and Bills To Kill. These are guaranteed plans that will help any individual that feels that they are not financially secured to become a homeowner. The Own A Home program is designed for aspiring homeowner in which they

An alternative would be for lenders to add a true customer service department which is not based on pay or get out, but is counseling based to keep Americans in the American Dream of home ownership. This would not only keep their customers for future business with new home loans, but would be noticed by neighbors and the community who are appreciative their home values are not decreasing. The lenders would counsel them through the sale by assisting them with getting the most they can for their home. By getting local community organizations involved to help with home repairs and curb appeal. Once the home is market ready and a dollar amount has been reached for these repairs the home owner will have to volunteer time and/or resources to assist another person going through the same situation. This would not only help the homeowner but will keep homes in the area selling at a fair market value and not bring down the values in their neighborhood. The assistance provided by the lenders and assistance from the community will help build their self confidence and make them feel like they are not alone.

There is by no means a simple solution to solving the home foreclosure epidemic but there are many changes that can be made to help Americans across the globe. The first, I believe starts

“Most of the homes being abandoned and foreclosed will produce losses for the mortgage lender, which could add up to trillions of dollars and break the financial system before it is half repaired” (Zuckerman, 2008). These are the major reasons why the government should be thinking of a bailout for homeowners. If the government will not take action, then these losses will go past any bailout efforts of the government and it will be too late. By preventing foreclosures, it could bring a double benefit to the US economy and society. It would let families to stay in their homes and at the same time keep the housing market from getting out of control.

I believe the foreclosure crisis will only continue and worsen until we understand the needs of the American public. Giving money is not the answer entirely. Each situation is unique and different from another. What works for one citizen may not be the solution for another. This is not only a financial situation but a social situation in my opinion. If he or she has a legitimate reason why they are in a foreclosure panic, such as death, divorce, sudden medical illness, or

To help combat the fear of foreclosure, there should be in place a program that helps those who are in the danger of foreclosure to have a second option. A program that helps transplant people and families into another building or home that would be cheaper or affordable for them. At the same time as helping them find a place, help them move, and help them find a job (if unemployed) to make them independent once again.

The same way that President Clinton boosted about 67.5% of all American people could become homeowners in 1995, will be the same amount of people that lose their homes potentially putting children out on the street and increasing the unemployed homeless population taking up residence in tent cities, where is the hope now? Now is the time to act and include benefits to all homeowners that still believe in the America Dream. The Government and the Banks need to provide modification programs to all homeowners to reduce their interest rates to 4.75% regardless of equity or loan to values. If these homeowners who are currently 200% loan to value, care enough to strive to make every payment timely but are in loans that are coming due or ready to adjust, the industry owes these homeowners the right to a loan that they can afford and maintain regardless of the economy. Each homeowner in America is surrounded by foreclosed properties or short sales affecting their value and impeding any ability to successfully sell their properties.

The main goal the government should be focusing on is to reduce homeowner’s monthly payments, by enticing lenders to make concessions in interest rates that will make their payment affordable. This plan can keep families in their homes and would decrease the number of foreclosures. Providing a financial rescue plan without requiring

The foreclosure crisis in America has impacted everyone- even those who don’t own homes. Our nation is currently struggling with high unemployment, a relatively illiquid credit market, and a deficit that raises serious concerns about the value of the US Dollar in the not too distant future. With interest rates already at historic lows and the government pursuing an unprecedented policy of quantitative monetary easing, options for government intervention are limited. While there is no simple solution to this problem, I think that we must look at the reasons the housing market went into crisis, and based on that develop a regulatory system that will allow us to avoid another situation like this in the future. If Americans believe

Banks now offer programs to help homeowners/homebuyers, but many times, these loans are often hard to obtain. The current programs have more stringent requirements that are unreasonable for distressed homeowners. In my opinion, the only way to rectify the foreclosure issue is to make a substantial change in how potential homebuyers and homeowners obtain loans.

The government has instituted a variety of programs to help alleviate the crisis. Various tax bills have been passed with an aim of encouraging people to buy houses and also to help the low income renters. In 2007 the government initiated a foreclosure prevention program dubbed FHA secure. The initiative is handled by the Federal Housing Administration and is an insurance program aimed at mortgages taken by those who have good credit

When the banks see clients leaving or no more new clients, the competitive spirit would come back to life and the banks would lower interest rates, even possibly give out “free loaned money.” Obviously, this would be temporary, but it could definitely affect the economy in a superb way. Once a turn around in the housing sector begins and demands for housing increases, then interest rates could slowly start going back up to ideal bank loaning conditions. If banks understood that they would make money in coming years, without losing money in the present, why not follow this path? This is a possible idea for all homebuyers in the middle and lower class. If a foreclosure is on someone’s record and the foreclosure happened during the recession, it would be especially great for him or her. The banks would see that buyer’s difficulty and in order to keep the client, interest rates would remain low for a longer period. If the foreclosure happened before, then that person would be treated like every other buyer.

Government policies and subsides have a sizable impact on property price, and demand. The government can temporarily boost demand with tax credits, deduction and subsidies. From the customers point of view

The current real estate crisis that America finds itself in is one of the greatest challenges America has ever faced. America’s troubles are further compounded by increasing unemployment of American citizens and environmental problems like global warming. Solving any one of these problems would be a Herculean task, yet they must each be addressed in order to protect American families from disaster. However, it is possible to find a solution to the problems of the real estate crisis that can also be used to improve the problems of the unemployment and environmental destruction. The first part of the solution involves the United States government purchasing the homes that have been foreclosed and using them to offer temporary housing to